The administrators of the Whyalla steelworks, KordaMentha, have finalised the sale of the Beach Hotel, previously owned by UK businessman Sanjeev Gupta. The hotel, situated on the foreshore at Whyalla, near the steelworks, has been acquired by South Australian-based Lofty Property Group. The sale comes as the South Australian government works to secure the future of the Whyalla steelworks.
South Australian Treasurer Tom Koutsantonis said that businesses are investing in Whyalla due to a positive outlook for the town, which is approximately 380 kilometres north of Adelaide. “This is a positive step for Whyalla at an important time,” he stated. The 40-room motel was purchased by Gupta in December 2023 for $4.7 million; the recent sale price was not disclosed.
KordaMentha was appointed administrator of the Whyalla steelworks in February of last year, following the state government’s seizure of control. Premier Peter Malinauskas said last week that he anticipated the sale process would take 18 months. The Whyalla steelworks is a major industrial complex that produces steel products for domestic and international markets and is a significant employer in the region.
Steelmaker BlueScope leads a consortium, which includes Japan’s Nippon Steel, South Korea’s POSCO, and India’s JSW, and is considered a frontrunner in the purchase. Eleven months ago, the federal and South Australian governments jointly announced a $2.4 billion bailout for the Whyalla plant, underscoring its importance to the region’s economy.
